US and Japan Unite to Prop Up Weakened Yen

The US and Japan have taken joint action to prop up the yen for the first time in nearly 30 years, according to reports. The intervention came after the currency plunged to its weakest level since 1986, with the yen sliding to 163.24 per dollar last month due to higher US interest rates, rising oil prices, and persistent capital outflows.

The Federal Reserve Bank of New York reportedly took the unusual step of selling euros to buy yen on behalf of the US Treasury through Goldman Sachs and Morgan Stanley.

Analysts estimate that Japan's intervention may have totalled about 8.45 trillion yen ($52.8 billion), with some estimating it could be between 6 trillion and 7 trillion yen.